The most common to date bonus credit cards are cards, using which you can earn airline miles and travel at a discount. But cards that return a portion of cash back can help not only reduce the cost of a vacation, but also on other large purchases.
Such payment instruments can be the secret weapon of any traveler. Here are three main points that traveling with aviation bonuses may encounter:
- Suppose you used credit card points to book a free ticket to the city of your dreams and even covered your hotel stay. However, as soon as you land, you will need to pay for the rental car, transfer, food, activities and excursions. Can you pay it with bonuses on the card?
- You dream of visiting some remote exotic island, where you can arrive only on the plane of a rare airline. Or in this region there are no large hotel chains that could cover your bonus points.
- You want to spend some unusual trip. Order a trans-ocean cruise, rent a large minibus for the whole family and drive around it in Europe or book an all-inclusive tour. Such requests will not be able to cover your air miles.
Cards with cashback can offer more options.
First of all, instead of receiving one or several bonuses for purchases, cashback is returned to you in the form of real money and always at a certain percentage. For example, you get 1 point for every dollar spent, making everyday purchases and 2 points for every dollar spent on travel or lunch in a restaurant. A card with cashback always earns for you, for example, 1.5% of cash purchases.
Depending on the conditions of the card’s maintenance, you can receive the returned money back to the balance or repay the interest on the loan or receive it on another account not tied to the card.
Instead of getting 10,000 miles using an airline miles card, you can get $ 100 for your trip, with which you can pay for a rental car, a tour, a hotel, or a purchase in a boutique.
Watch the status of your bonuses and discounts. If you have accumulated enough airline miles to pay for the flight back and forth, it’s time to start using your cashback card to save more extra money for a holiday.
What travels on a cashback card do not work very well?
If you are planning a business trip or a stay in a luxury hotel, it may be more profitable to use airline miles to pay for an expensive room. Or, for example, you need to fly a direct flight from Moscow to Tokyo in business class. Such a ticket can cost $ 4000. To collect such an amount, receiving 1.5% of purchases, you will need to spend more than $ 250,000 with a credit card. In this case, using air miles, you will need to spend 80,000 miles plus the amount of tax in the region of 1000 rubles. In this case, it is much more reasonable to use the second option.
Choose a credit card according to your lifestyle and your needs. Different cards may charge a different amount of interest back, depending on which stores you make purchases or, for example, depending on the types of these purchases.
Stay tuned for special offers from banks. Use exactly those that allow you to save more than others. For example, if you have a large family and the main expense is the purchase of products, you need a card that returns an additional percentage for the purchase of food products.